TCS Closes FY20 with Strong Deal Wins: Augurs Long Term Resilience Amidst Near Term Challenges

2024-04-18 09:09:49 Technology

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? Annual Revenue $22.031 Bn, +5.3% YoY (+7.1% in CC)
? Full Year Growth led by Life Sciences & Healthcare (+16.8% YoY), Europe (+14.6% YoY) and UK (+10.4% YoY)
? Full Year Net Income: $4.541 Bn, +1.1% YoY
? Q4 Total Contract Value: $8.9 Bn
MUMBAI, April 16, 2020: Tata Consultancy Services (BSE: 532540, NSE: TCS), the leading global IT services, consulting and business solutions organization, reported its consolidated financial results according to Ind AS and IFRS, for the quarter and financial year ending March 31, 2020.
Annual Highlights for 2019-20 Q4 FY 2020 Highlights
? Operating Margin: 24.6%; Net Margin: 20.6%
? Robust Client Additions:
$100M+ band: 49 (+5 YoY)
$50M+ band: 105 (+6 YoY)
$20M+ band: 240 (+25 YoY)
? Employee Metrics:
o Net addition: 24,179 employees
o Employee headcount: 448,464
o LTM IT Services Attrition: 12.1%
? Free Cash Flow: $4.54 Bn
? Over $5.294 Bn of cash returned to shareholders in dividends ? Revenue of $5.444 Bn, +0.9% YoY (+3% in CC)
? Operating Margin: 25.1%
? Net Income: $1.096 Bn; Net Margin: 20.2%
? Cash conversion: Operating Cash Flow 109.4% of Net Income
? Net Addition: 1,789 employees
? Final Dividend per share (proposed): ` 6
Rajesh Gopinathan, Chief Executive Officer and Managing Director, said: ?Amidst the tumult of the last few weeks, our priority has been to safeguard the health and well-being of our employees while continuing to support our customers? mission critical activities globally. The agility, resilience and adaptability of our operating model were put to the test, and it has emerged stronger and more proven than ever before. This has further strengthened our customers? confidence in TCS. Many of them have reached out to us to express their appreciation, and gratitude for how our teams went above and beyond to help them keep their businesses running under very difficult circumstances. I want to thank all the TCSers who showed immense grit, resolve and ingenuity, in the true spirit of TCS, to make this possible.?
He added: ?The pandemic completely reversed the positive momentum that we had started seeing in some of our biggest verticals in the first half of the quarter. On the positive side, we had very strong deal closures during the quarter. In fact, our order book this quarter is the largest ever, from the time we started reporting the metric. Organizations across the world are realizing the need for operational and systems resilience. Many of the large deals we signed during the quarter address precisely that need. They are core transformation programs that leverage the power of technology to make our customers? operations leaner, faster, and more resilient.?
N Ganapathy Subramaniam, Chief Operating Officer & Executive Director, said: ?Covid 19 presented us an operational challenge of scale, speed and complexity. Although we have been the pioneers of the Location Independent Agile model, switching a long-established infrastructure model of an organization of over 448,000 employees in a matter of days is pushing the boundaries of location independence as well as agility to their limits. It also required recalibrating the project management methodology and the security posture. The outcome was our Secure Borderless Workspaces framework, which has now enabled close to 90% of our employees to work remotely and securely. Despite the lockdowns, I am pleased that our customers continue to experience the same energy and delivery certainty from TCS as before. All in all, we managed to not only maintain all essential services for our customers, but also continue the journey in their growth and transformation programs. As for the operating metrics, I am particularly happy with the robust client metrics this quarter, with strong additions across most revenue buckets.?
V Ramakrishnan, Chief Financial Officer, said: ?The speed with which we were able to switch from a highly centralized delivery to a fully distributed model is also on account of the investments we have been making over the years in building an agile and resilient core. We have digitized virtually all our processes and invested in cutting edge infrastructure and collaboration tools to support our Location Independent Agile delivery model and Secure Borderless Workspaces. As we enter a difficult and uncertain period, our strong balance sheet, best-in-class profitability and the inherent resilience of our business model position us well to navigate the challenges ahead and gain share.?
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